Nike completely suspends operations in Russia following Ukraine invasion

Nike announced it was completely leaving Russian markets on Thursday, three months after suspending its operations in the country following the invasion of Ukraine. 

The company had kept operations suspended at all of its owned and operated stores in Russia in response to Moscow's wartime actions, and those that remained open were operated by independent partners. But on Thursday, it joined other major brands, such as McDonald's and Google, confirming that it will leave the country altogether.

Foreign companies seeking to leave Russia because of the war in Ukraine face the prospect of new laws being passed in the coming weeks that would allow Moscow to seize assets and impose criminal sanctions. 

Russian authorities said they were ready to nationalize foreign assets and some officials assured Russians that their favorite brands would have domestic alternatives.

Another major global brand exits Russia completely https://t.co/FJKPfczFtf pic.twitter.com/L8k2eTerG8

— Forbes (@Forbes) June 23, 2022

"Nike has made the decision to exit the Russian market. Our priority is to ensure that we fully support our employees while responsibly scaling back our operations in the coming months," the company said in a statement.

Russian media reported in May that Nike had not renewed agreements with its largest franchisee in Russia, Inventive Retail Group (IRG), which operates 37 Nike-branded stores in the country through its Up And Run subsidiary. 

Sanctions on the country have unleashed an unprecedented and massive withdrawal of Western companies, which had been operating in Russia for the past three decades.

#Nike informó que abandonará por completo el mercado ruso y cerrará definitivamente todas sus tiendas en el país. ⛔🇷🇺 https://t.co/bE0ta4i4D3

— El Economista (@eleconomista) June 23, 2022

Other U.S. giants, such as Coca-Cola, Pepsi, and Starbucks, have halted or closed their operations in Russia in the face of the sanctions. While other major U.S. companies that have recently announced their intention to leave the country ruled by Vladimir Putin include Nissan, Levi jeans, Visa, Mastercard, and Google.
In March, McDonald's closed its 850 restaurants in the country, where it employed 62,000 people, including its flagship Pushkin Square location, becoming the latest company to withdraw its business amid the sanctions. 

Putin has sought to downplay the severity of the Western sanctions, promising that Russia will adapt and take steps to stop the flight of currency and capital.